Proplend: Now You Can Auto-Lend On 50% LTV Property Loans

Proplend has launched an auto-lend feature for its “tranche A” property loans, whether you lend through its regular account or its IFISA.

Proplend's tranche A loans are for a maximum of 50% of the property's valuation. Many loans are against properties that are earning income for the borrowers by being rented out (which have the highest, +++ Rating from 4thWay). Both those features give lenders huge downside protection.

If you switch on auto-lend, any outstanding funds you have in your Proplend* account will be lent on a daily basis, providing there are loan parts available.

A maximum of 20% of your entire pot will be automatically lent in a single loan. Your money might be allocated to new loan parts or you might buy second-hand parts from other lenders, depending on what is available. Proplend occasionally does four- or five-year loans, but your money will be allocated to loans of three years or less.

As I write, there are four qualifying tranche A loans available, paying an average 7.2%, which is very attractive for the risks involved.

Over time, as more loans become available and you lend more or re-lend repayments and interest, I expect that you will end up with an increasing number of loans that should turn out to be a sufficient number for these low-risk loans. The lower the risk, the less diversification is necessary to reduce your risks, so with Proplend you need far fewer loans than many other P2P lending sites to have good prospects.

The auto-lend feature will help to ensure you don't miss out on lending in tranche A loans. Proplend places lenders' money in £1,000 rounds, ensuring that more lenders can take part in each loan.

Once in a loan, your money won't be reallocated to different loans.

If you want to lend in a specific loan, you can toggle auto-lend off and choose a loan for yourself.

Visit Proplend*.

Read a Proplend Review from one of 4thWay's experts.

The 4thWay^® PLUS Ratings are calculations developed by professional risk modellers (someone who models risks for the banks), experienced investors and a debt specialist from one of the major consultancy firms. They measure the interest you earn against the risk of suffering losses from borrowers being unable to repay their loans in scenarios up to a serious recession and a major property crash. The ratings assume you spread your money across hundreds or thousands of loans, and continue lending until all your loans are repaid. They assume you lend across 6-12 rated P2P lending accounts or IFISAs, and measure your overall performance across all of them, not against individual performances.

The 4thWay PLUS Ratings are calculated using objective criteria that can be measured and improved on over time, although no rating system is perfect. Read more about the 4thWay^® PLUS Ratings.

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